Solana Soars Past XRP, Entering Top Five Cryptocurrencies in Market Cap

20 December 2023

in XRP

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The crypto market is witnessing a tectonic shift as Solana (SOL) has surged past XRP to claim a spot among the top five cryptocurrencies by market cap, albeit momentarily. This remarkable ascent highlights the dynamic nature of cryptocurrencies and the potential for rapid changes in the hierarchy of digital assets.

Solana’s Meteoric Rise

Solana’s remarkable journey has seen it leap over established names in the crypto world, its price notching an impressive surge of more than 11,000% in five years.

Legal expert and crypto enthusiast Bill Morgan pointed out this trajectory, noting the swift nature of Solana’s climb up the ranks. Despite predictions of XRP holding its ground, SOL’s momentum proved overwhelming, briefly eclipsing XRP’s market capitalization.

Trading Dynamics: XRP’s Struggle and Solana’s Strength

In the competitive crypto market, XRP has been wrestling to regain its stature, but the absence of a strong pushback above key price averages has led to further sell-offs. The bulls and bears are locked in a tug-of-war, with the bulls trying to push prices to a stable zone between $0.55 and $0.70 while the bears aim to push the value down to critical support levels.

On the other hand, Solana has shown resilience, bouncing back from a dip to its 20-day Exponential Moving Average (EMA), an essential indicator for traders. This resilience is significant because Solana has consistently stayed above this moving average since its rally in mid-October. A sustained defense of this level by the bulls could see Solana aiming for a price point of $100.

Solana Outshines Its Peers

Notably, Solana is not just outperforming XRP; it’s also outdoing other leading layer-1 cryptocurrencies like Ethereum and Cardano this year.

On-chain activities reveal that Solana has been effectively capturing value, especially with the recent increase in Ordinals inscriptions — a trend that could have caused network congestion but instead showcased Solana’s robust ecosystem.

From December 16 to 20, Solana’s price saw a 12% uptick in just four days, signifying investor confidence and its capability to handle blockchain innovations without a hitch.

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